GST council in their 21St meeting extended the last date for filing GSTR-1 for the month of July, 2017 to October 10, 2017. The Council also formed a inter ministerial panel to look into the issues of GSTN.
GST by K&S
GST: Government extends GST returns filing dates
Government extends due date for filing GST Returns for July and August 2017. The dates are as follows:
|
Return |
Due Date |
|||
|
July, 2017 |
Aug-17 |
|||
| Old Date | New date | Old Date | New date | |
| GSTR – 1 | 05/09/2017 | 10/09/2017 | 20/09/2017 | 05/10/2017 |
| GSTR – 2 | 10/09/2017 | 25/09/2017 | 25/09/2017 | 10/10/2017 |
| GSTR – 3 | 15/09/2017 | 30/09/2017 | 30/09/2017 | 15/10/2017 |
The extension is on the light of heavy traffic on Monday, and the GSTN portal cannot hold the heavy load.
To view the notification please click the link below:
https://drive.google.com/file/d/0BwfaVqFwg9yDTzMzT3FVY0hteUE/view?usp=drivesdk
GST: The due dates for filing of returns notified
CBEC had issued formal notifications extending the time limit for filing GST returns GSTR -1, GSTR- 2 & GSTR -3 for the month of July 2017 and August 2017. CBEC also notified the time limit for furnishing Form GSTR – 3B for the month of July 2017 and August 2017. The time limit as per notifications is given below:
| Form No. | Details to be furnished | Jul-17 | Aug-17 | Notification No. |
| GSTR – 3B | Outward and Inward Supplies, TDS/TCS, ITC etc. | 20/08/2017 | 20/09/2017 | 21/2017 (Central Tax) |
| GSTR – 1 | Outward Supplies | 1st to 5th of September, 2017 | 16th to 20th of September, 2017 | 18/2017 (Central Tax) |
| GSTR – 2 | Inward Supplies | 6th to 10th of September, 2017 | 21st to 25th of September, 2017 | 19/2017 (Central Tax) |
| GSTR – 3 | Monthly Return | 11th to 15th of September, 2017 | 26th to 30th of September, 2017 | 20/2017 (Central Tax) |
To see the notifications please click the link below:
GST: E-Way bill approved by GST Council
GST council approves E-way bill which requires ferrying goods worth more than Rs 50,000 within or outside a state will require securing an e-way bill by prior online registration of the consignment. To generate an e-way bill, the supplier and transporter will have to upload details on the GSTN portal, after which a unique e-way bill number (EBN) will be made available to the supplier, the recipient and the transporter on the common portal. The e-way bill rules will become applicable on a date as notified that will happen quite soon.
Other Important Decisions of the Council
- GST rate for textile job works at 5 percent.
- Reduced the rate for government works contract to 12 percent with benefits of input tax credit.
- The tax rate of job work for printing books and newspapers will be 12 percent if the service is supplied by someone else, while the GST rate will remain 5 percent if it is printed by the same organisation.
- For agriculture services, tax rate of post-harvest and storage has been brought down to 12 percent from 18 percent. Similarly, tax rate for entry into planetariums has been reduced to 18 percent from 28 percent.
- Housekeeping services such as plumbers, it is the liability of the aggregator to pay GST.
- Cut taxes on certain tractor parts to 18 percent from 28 percent.
- Goods and services used specifically for the purposes FIFA Youth World Cup later this year in India has been exempted from GST.
GST: Interest on Late Payments/Refunds
The CBEC has issued notification for Interest on delayed payments, taking excessive input credit or reducing output tax liability and interest on refunds receivable from the department. Please see the table below for the details:
| Sl no | Instances where interest if payable | Rate of Interest |
| 1 | Failure to pay tax or a part there of within prescribed period | 18% |
| 2 | A taxable person who makes an undue or excess claim of input tax credit or undue or excess reduction in output tax liability | 24% |
| 3 | Interest on refunds (in case with hold by the Commissioner in case of appeals or by any other reason) | 6% |
| 4 | Interest on delayed refunds (in case of refunds not paid within 60 days from the date of receipt of refund application) | 6% |
| 5 | Interest on delayed refunds where any claim of refund arises from an order passed by an adjudicating authority or Appellate Authority or Appellate Tribunal or court which has attained finality and the same is not refunded within sixty days from the date of receipt of application filed consequent to such order |
9% |
Please click the link below for the notification.
GST: Important points and immediate action required
The few important point and actions to be taken by a business immediately is given below:
- Migration to GST: If you are a existing tax payer under VAT, Central Excise, Service tax etc, and if you are not migrated to GST, do it immediately. If you didn’t migrate, you may end up in trouble at the time of movement of goods.
- Branches: If you have branches in different states, you have to take separate registration in each state. Ensure that separate registration is taken already, if not take immediate steps for the registration.
- GST Registration number: Provisional ID given to you at the time of migration is your GSTIN.
- Communicate: Communicate your GSTIN to all your suppliers, bankers and your service providers.
- Supply from Unregistered Persons: Ensure that the supply from unregistered persons (either individually or collectively) does not exceed Rs.5000/- in a day. If the total supply (both goods and services) exceeds reverse charge will apply. In case the total supply exceeds Rs.5000/- in a day ensure that the same is related to services part only.
Eg., if you are undertaking a repair in your business premises, and you are employing a local contractor for the works who is a unregistered person. It’s advisable to purchase the materials required in your name and pay for the labour charges only to the contractor. In this case you will be incurring reverse charge only on labour charges and you will be eligible to take input credit of materials as well as the labour charges you had paid on reverse charge. If it’s a composite contract, you will lose the benefit of input tax on materials
- Payment to Goods Transport Agency: These payments will attract reverse charge if you are a registered person in GST. Please ensure proper documentation is maintained.
- Availability of Input Credit: Input credit will be available on almost all expenses you are incurring for furtherance of business. Please be cautious that reverse charge will be applicable on all expenses if it’s from persons, subject to daily limit of Rs.5000/-. You will be eligible to take input credit on such reverse charge payments, if the same is eligible to take credit.
- Composition Scheme: Those registered persons who are opting for composition scheme needs to file intimation, on or before July 30, 2017. Input credit is not available for those opted for composition scheme.
- CGST, SGST & IGST: All your intra state (with in state) supply will attract CGST and SGST and you have to show the same in your invoice. If the GST rate is 18%, the CGST will be 9% and the SGST also will be 9%. For interstate supply (outside the state), the tax applicable is IGST. IN case of interstate supply, the entire tax should be shown as IGST. In the above example, the IGST will be 18%.
- Transfer to Branches: Transfer of goods between places of business outside the state will attract IGST. GST will not be applicable for stock transfer within the state.
- Advance Taxable: Advances received from clients for supply of goods or services will attract GST. Please ensure GST is collected and paid on advances.
- Returns under earlier laws: Ensure that the all the returns under the VAT, Central excise etc is filed and the same is fully reconciled with the books of accounts.
- Credit of Duty on stocks: Ensure that, the stock records are updated as on 30-06-2017 and ensure that the required returns for claiming credit of duty paid is filed within the time limit prescribed.
- Unregistered Dealers: The registered dealers may prefer to deal only with the registered persons, as they have to pay tax on reverse charge basis if they take goods or service from unregistered persons. Also those who are not registered and the annual turnover is below the threshold of Rs.20 Lakhs, may do a cost benefit analysis and decide to proceed with registration or not.
The above points is for guidance only. To know more GST updates please visit our blog http://www.karthikandsunil.wordpress.com
GST: HSN Code in Tax Invoice
HSN Code in GST Invoice
As per the circular no,12/2017(Central Tax) issued by Ministry of Finance the number of HSN number that needs to be shown in the tax invoice is based on the turnover of the registered person in the preceding year.
A registered person having annual turnover in the preceding financial year as specified in column (2) of the Table below shall mention the digits of Harmonised System of nomenclature (HSN) Codes, as specified in the corresponding entry in column (3) of the said Table, in a tax invoice issued by him under the said rules.
Table
| Serial Number | Annual Turnover in the preceding Financial year | Number of Digits of HSN Code |
| 1. | Upto Rupees One Crore Fifty Lakhs |
Nil |
| 2. | More than Rupees One Crore Fifty Lakhs and upto Rupees Five Crores |
2 |
| 3. | More than Rupees Five Crores |
4 |
To view the notification, click the link below:
GST: Registered person dealing in Second hand goods
GST on Second had goods received by a registered person dealing in second hand goods
Ministry of finance vide notification no. 10/2017 exempts intra-State supplies of second hand goods received by a registered person, dealing in buying and selling of second hand goods and who pays the central tax on the value of outward supply of such second hand goods as determined under sub-rule (5) of rule 32 of the Central Goods and Services tax Rules, 2017, from any supplier, who is not registered, from the whole of the central tax leviable thereon under sub-section (4) of section 9 of the Central Good and Services Tax Act, 2017.
GST: Reverse charge not applicable for expenses up to Rs.5000/- per day from Unregistered dealers
Expenses (Both Capital & Revenue) incurred from unregistered dealers
Ministry of Finance vide notification no. 18/2017 exempts intra-State supplies of goods or services or both received by a registered person from any supplier, who is not registered, from the whole of the central tax leviable thereon under sub-section (4) of section 9 of the Central Goods and Services Tax Act, 2017.
Provided that the said exemption shall not be applicable where the aggregate value of such supplies of goods or service or both received by a registered person from any or all the suppliers, who is or are not registered, exceeds five thousand rupees in a day.
GST: Cess on Goods and Services
Ministry of Finance, Government of India, notified the goods and Services for which compensation cess is applicable. To view the notifications, click on the link below:
Cess on Goods: Goods _Compensation Cess
Cess on Services: Services-Compensation-Cess-Notification